Q. What is the definition of insolvency?
A. An individual or a company that is unable to meet payment obligations to creditors when they fall due. It is illegal for a company to continue to obtain credit when insolvent.
Q. Why should I/we meet with you? I/we are struggling but have assets.
A. In this situation you are vulnerable to a hostile creditor. Statutory demands, County Court Judgements, bankruptcy petitions and bailiff actions to possess personal goods can be initiated by the actions of a single creditor. You can even lose your personal share of the equity in your home.
Q. We are a Limited Company; we are technically insolvent, am I personally safe?
A. No; if a creditor presents a winding up petition and the Official Receiver is appointed the Directors of the company could be held personally responsible if it can be proved that credit was obtained whilst current debts could not be paid. The Official Receiver can go back 3 years to establish culpability and demand payment from the directors.
Q. Given time I/we believe that we can trade out of this situation, can you still help?
A. Yes, we can apply for an Interim Order or Moratorium which will stop all demands from your existing creditors (your creditors would prefer you not to know this).
We can then prepare a CVA or IVA for you to pay your creditors a percentage of the monies owed over a period of years; if approved you can continue to trade.
Q. I am/we are receiving threats of legal action and/or possession orders how fast can you help?
A. We will immediately begin to stop the pressure you are getting from your creditors by producing a statement of affairs on your behalf.
Q. How much does this service cost?
A. An initial consultation of up to one hour is free of charge. This is our investment to establish if and how we can help. Should you wish to take advantage of our service, fees are fixed. We will explain how at the initial consultation. No decisions need to be taken on the day.
Q. What happens if I do nothing?
A. If you wait and resort to bankruptcy/liquidation you may not be able to find a bank that will offer you facilities or even an account. There will be limitations on your line of credit and there will be restrictions on how you manage your affairs.